The share market is a marketplace where ownership stakes in companies, called shares or stocks, are bought and sold. When a company needs money to grow, it can sell small pieces of itself to the public. Anyone who buys a share becomes a part-owner and may benefit if the business grows and earns profits.
Exchanges and brokers
In India, the two main exchanges are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). You cannot trade on them directly. You open a demat and trading account with a registered broker, who places orders on your behalf. Your shares are held electronically in the demat account.
How prices move
Prices are set by supply and demand. If more people want to buy a stock than sell it, the price rises; if more want to sell, it falls. News, company earnings, interest rates, and overall sentiment all influence this balance.
Indices
An index tracks a basket of stocks to show how the market is doing. The NIFTY 50 follows 50 large companies on the NSE, while the SENSEX follows 30 on the BSE. When people say the market is up, they usually mean an index is up.
Getting started
- Complete KYC and open a demat account.
- Begin with small amounts and learn as you go.
- Prefer diversified options such as index funds if you are unsure.
- Invest money you will not need for several years.
Markets reward patience and knowledge. Spend time learning how businesses make money before you commit capital, and remember that prices can fall as well as rise.